Out of money? What happened?

Hello and welcome. Today we will talk about what personal finances are and why they are important to everyone.

What are personal finances?

Every time we receive our check for the days we have worked we have different routes of action:

Route 1. John, the impulsive one:

Every time John receives his payment, the first thing he does is go to a party and/or buy things “because he deserves them”. In consequence, he has burned all he’s resources by the weekend (or even earlier).

What will John do now? Well, now John is forced to generate debt through the use of a credit card, pawning some property or borrowing from a family member or friend with whom he will later antagonize (because he will never have the money to pay).

Route 2. Sonia, the “responsible” adult:

Sonia always considers what expenses she has for the month (receipts, food, transportation, etc.) so when her payment arrives, the first thing she does is distribute it among these needs.

What will Sonia do with the money that is left? Since she does not have a specific purpose for that money, Sonia uses it for miscellaneous expenses, so at the end of the month she runs out of money and has nothing in case of…